Reviewing DDR Corp. (DDR) & Four Corners Property Trust (FCPT)
DDR Corp. (NYSE: DDR) and Four Corners Property Trust (NYSE:FCPT) are both financials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.
This is a summary of recent ratings and recommmendations for DDR Corp. and Four Corners Property Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Four Corners Property Trust||0||1||2||0||2.67|
DDR Corp. currently has a consensus price target of $12.09, indicating a potential upside of 50.20%. Four Corners Property Trust has a consensus price target of $26.67, indicating a potential upside of 0.25%. Given DDR Corp.’s higher probable upside, analysts clearly believe DDR Corp. is more favorable than Four Corners Property Trust.
Earnings and Valuation
This table compares DDR Corp. and Four Corners Property Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|DDR Corp.||$969.51 million||3.06||$60.01 million||($0.46)||-17.50|
|Four Corners Property Trust||$124.02 million||13.15||$156.80 million||$1.41||18.90|
Four Corners Property Trust has higher revenue, but lower earnings than DDR Corp.. DDR Corp. is trading at a lower price-to-earnings ratio than Four Corners Property Trust, indicating that it is currently the more affordable of the two stocks.
DDR Corp. pays an annual dividend of $0.76 per share and has a dividend yield of 9.4%. Four Corners Property Trust pays an annual dividend of $0.97 per share and has a dividend yield of 3.6%. DDR Corp. pays out -165.2% of its earnings in the form of a dividend. Four Corners Property Trust pays out 68.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Four Corners Property Trust has increased its dividend for 6 consecutive years. DDR Corp. is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares DDR Corp. and Four Corners Property Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Four Corners Property Trust||65.46%||17.37%||8.56%|
Insider and Institutional Ownership
81.3% of DDR Corp. shares are owned by institutional investors. Comparatively, 87.4% of Four Corners Property Trust shares are owned by institutional investors. 16.1% of DDR Corp. shares are owned by company insiders. Comparatively, 0.2% of Four Corners Property Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Four Corners Property Trust beats DDR Corp. on 10 of the 16 factors compared between the two stocks.
About DDR Corp.
DDR Corp. is a self-administered and self-managed real estate investment trust. It operates through two segments: shopping centers and loan investments. It is in the business of acquiring, owning, developing, redeveloping, expanding, leasing and managing shopping centers. As of December 31, 2016, it owned and managed approximately 106 million total square feet of gross leasable area (GLA). As of December 31, 2016, the portfolio properties included 319 shopping centers (including 152 centers owned through joint ventures). As of December 31, 2016, the portfolio properties also included over 650 acres of undeveloped land, including parcels located adjacent to certain of the shopping centers. As of December 31, 2016, the portfolio properties aggregated to 75.8 million square feet of Company-owned GLA located in 35 states, plus Puerto Rico. These centers are in the Southeast and Midwest, with significant concentrations in Florida, Georgia, Ohio and North Carolina, as well as Puerto Rico.
About Four Corners Property Trust
Four Corners Property Trust, Inc. is a self-administered company and real estate investment trust (REIT), which owns, acquires and leases properties for use in the restaurant and food service related industries. The Company operates through two segments: real estate operations and restaurant operations. Its real estate operations segment consists of rental revenues primarily generated by leasing restaurant properties to tenants through triple-net lease arrangements under which the tenant is primarily responsible for ongoing costs relating to the properties. Its restaurant operations segment is conducted through its taxable REIT subsidiary, Kerrow Holdings, LLC, and consists of its Kerrow Restaurant Operating Business. As of December 31, 2016, it had owned 481 properties, all within the continental United States. Of these properties, 475 were held for investment and leased to tenants under triple-net leases and had an aggregate leasable area of approximately 3.4 million square feet.
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